Basis bids for soyabeans shipped by barge to the US Gulf Coast were steady to lower on Thursday on weakening barge freight rates and light demand, traders said. CIF corn basis bids were mostly steady to weak, while wheat basis bids were unchanged in quiet trade.
Minimal corn and soyabean export demand kept a lid on FOB Gulf export premiums. Wheat offers were also flat. Spot barge freight rates on Midwest rivers fell by 75 to 125 percentage points of tariff as rainy weather spurred hopes of better navigation conditions after recent delays caused by low water, shippers said.
Shippers are still loading barges with lighter drafts to minimize the risk of groundings in shallow spots on the lower Ohio River and the Mississippi River north of Memphis. Vessel delays at locks 52 and 53 on the lower Ohio River have also delayed navigation. Five barge tows are waiting in queue to pass through lock 52 on Thursday afternoon and 55 vessels are waiting at lock 53, where the US Army Corps of Engineers is estimating locking delays of at least three days.
Net US corn export sales last week hit a three-week high and topped trade expectations, but cumulative sales for the 2017-18 season remain 34 percent behind last year, according to US Department of Agriculture data. Net soyabean export sales last week were the lowest in eight weeks, while wheat sales hit a five-week high. Both were in line with trade estimates.
October CIF soyabean barges traded at 31 to 33 cents a bushel over Chicago Board of Trade November, down 1 to 3 cents from bids a day earlier. FOB basis offers for late October soyabean loadings were around 56 cents a bushel over futures. Bids for October corn barges were steady at 33 cents above the CBOT December futures contract. FOB corn offers for late October loadings were about 55 cents over futures.
October soft red winter wheat barges were bid 55 cents over CBOT December futures. Spot FOB Gulf offers were 85 cents over December futures. October CIF hard red winter wheat bids were 180 cents over the K.C. December contract for 12 percent protein grain. FOB offers for October vessels were 190 cents over futures.
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